ASIC to take GE Money to court over deception claims

Owen Jacques is an award-winning investigative journalist from Mackay, now based on the Sunshine Coast as APN Australian Regional Media’s Online News Editor. He has a strong background reporting on politics, business and breaking news. Owen has also specialised in resources reporting, which included a successful campaign to fight 100% fly-in, fly-out mining in rural Queensland towns.

CLAIMS of dodgy dealings by GE Money have caught the eye of the industry regulator, which will take the lender to court.

The Australian Securities and Investments Commission is accusing the financial powerhouse - which offers a range of Myer and Coles branded credit cards - of using misleading and deceptive conduct when contacted by customers who wanted to start using their cards early last year.

According to ASIC's allegations, last year GE Money told customers that to activate their credit cards, they needed to give GE permission to send them unwelcome offers to increase their credit limits.

The regulator claims this apparent condition was nonsense and an example of a "false and misleading representation".

From mid-2012, banks and credit companies were banned from offering credit increases unless they were given express permission by the customer.

Those flouting the law at the time of GE's alleged misdeeds could face a maximum penalty of $1.1.million for each breach.

That limit has now increased to $1.7.million.

GE and ASIC are scheduled to face off in Federal Court in Sydney on November 14.

A spokeswoman for GE Money said it was working with ASIC to address its concerns.